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Question
A farmer grows rice and wheat. How will an increase in the price of rice affect the supply of wheat?
Solution
Supply curve of rice will shift to the left as rice and wheat are substitute goods and producing wheat is more profitable as compared to producing rice.
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RELATED QUESTIONS
The following supply curve shifts from SS to S1S1. It may be due to ______.
Which of the following factor may cause decrease in supply.
Increase or decrease in supply means ______.
Match the following and select the correct option.
| Column I | Column II |
| (i) Expansion of supply | (A) Prices are expected to fall in future |
| (ii) Decrease in supply | (B) Fall in prices |
| (iii) Contraction of supply | (C) Prices are expected to rise in future |
| (iv) Increase in supply | (D) Rise in prices |
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Define increase in supply.
What is meant by 'increase' in supply?
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How does an decrease in price of an input affect the supply curve of a firm?
Explain any two causes of increase in supply of a commodity.
